Vehicle Telematics Market size is estimated to surpass USD 215,000 Million by the end of 2033, growing at a CAGR of 18% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of vehicle telematics was over USD 75,000 Million. The market is primarily driven by higher count of connected cars along with expansion of automotive sector and high demand of vehicles by the population. In 2021, there were nearly 237 million connected cars worldwide, and the count is expected to reach approximately 400 million by 2025.
The increasing requirement of semiconductor chips owing to its prolonged shortage due to lockdown imposed by pandemic, it is to accelerate its growth of semiconductor companies. In 2021, more than 1 trillion semiconductors were sold in 2021. In addition, telematics helps drivers to reduce consumption of fuel by tracking their unused time and increasing their efficiency. Alarming need to reduce fuel usage and rising requirement for safety assistance in the automobile is to boost the growth of vehicle telematics market.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
18% |
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Base Year Market Size (2022) |
USD 75,000 Million |
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Forecast Year Market Size (2033) |
USD 215,000 Million |
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Regional Scope |
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Vehicle Type (Passenger Cars, Commercial Vehicles)
The global vehicle telematics market is segmented and analyzed for demand and supply by vehicle type into passenger car and commercial vehicle. The passenger car segment is expected to hold the largest market size by the end of 2033. The growth is expected on the account of rising need of passenger car which is prompting the sales of passenger cars. The burgeoning population is demanding passenger cars for fulfilling their needs which is projected in increase the production rate of passenger cars. In 2020, globally, around 65 million passenger cars were sold. Furthermore, boosted sales of electric passenger car is to propel the growth of the segment. Globally, there were around 16 million electric cars on road in 2021. In the first quarter of 2022, nearly 2 million electric passenger cars were sold.
Our in-depth analysis of the global vehicle telematics market includes the following segments:
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By Service Type |
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By Vehicle Type |
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By Technology |
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By Sales Channel |
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North American Market Forecast
The North America vehicle telematics market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. Rising instances of fatalities caused by vehicle accident and high rate of frequent traffic congestion is expected to prompt the demand of safety feature in the automobiles. In 2021, nearly 43,000 people died in vehicle traffic crashes. Furthermore, the increased production of semiconductor in North America owing to its higher demand along with the expansion of automotive sector and presence of key players is projected to boost the market growth in the region. Average demand for semiconductor chips rose by nearly 17% in 2021 than 2019 and semiconductor production was increased by approximately 90% in 2021. Further, the higher usage of fuel by vehicles in United States is focusing to increase the need to reduce fuel consumption which in turn is expected to fuel the growth of vehicle telematics market. In 2020, nearly 40% of U.S. oil was consumed by light –duty vehicles.
Trimble acquired AgileAssets, an asset management provider to private and government organizations including road authorities and state level transportation agencies.
Bosch Global Software Technologies came in a 5-year partnership with Astrata for advancing fleet management system. The partnership aims to reduce the shortages and enables Astrata to broaden its supply chain all over the world.
Author Credits: Harshita Srivastava, Saima Khursheed
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